Trio-Tech Reports Third Quarter Results

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Trio-Tech Reports Third Quarter Results

VAN NUYS, Calif.--(BUSINESS WIRE)-- Trio-Tech International (NYSE MKT:TRT) today announced unaudited financial results for the third quarter and first nine months of fiscal 2013.

For the three months ended March 31, 2013, revenue decreased 13.2% to $6,529,000 compared to $7,522,000 for the third quarter of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the third quarter of fiscal 2013 was $543,000, or $0.16 per share. This compares to a net loss of $518,000, or $0.16 per share, in same quarter last year.


For the nine months ended March 31, 2013, revenue increased 3.0% to $23,627,000, compared to $22,940,000 for the first nine months of fiscal 2012. The net loss attributable to Trio-Tech common shareholders for the first nine months of fiscal 2013 narrowed to $1,065,000, or $0.32 per share, compared to a net loss of $2,525,000, or $0.76 per share, for the same period of fiscal 2012.

Cash provided by operations for the first nine months of fiscal 2013 increased to $4,104,000, compared to cash used by operations for the first nine months of fiscal 2012 of $2,079,000. Shareholders' equity at March 31, 2013 was $20,516,000, or $6.23 per outstanding share, compared to $20,556,000, or $6.25 per outstanding share, at June 30, 2012.

"Trio-Tech's third quarter performance was mixed, with revenue from semiconductor testing services up 8.5%, driven by higher testing volume in Malaysia and China, while sales of our semiconductor testing equipment fell 29%, primarily due to delayed shipments to customers. Higher gross margin in testing services, a sharply reduced loss in the oil and gas equipment fabrication segment, where we terminated our facilities lease in December, 2012, and lower operating expenses combined to reduce the loss from operations by about a third to $634,000 from $933,000 for last year's third quarter. We believe these factors will continue to benefit the Company in the future," said SW Yong, Trio-Tech's CEO.

About Trio-Tech

Established in 1958 and headquartered in Van Nuys, California, Trio-Tech International is a diversified business group with interests in semiconductor testing services, manufacturing and distribution of semiconductor testing equipment, oil and gas equipment fabrication and real estate. Further information about Trio-Tech's semiconductor products and services can be obtained from the Company's Web site at www.triotech.com, www.universalfareast.com, www.shi-international.com and www.ttsolar.com.

Forward-Looking Statements

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company.In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward-looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Southeast Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this Quarterly Report are forward-looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward-looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology.Forward-looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions.

(tables attached)

TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
 
 
Three Months Ended Nine Months Ended
March 31,March 31,
Revenue 2013   2012  2013   2012 
Products$3,018$4,268$12,073$10,685
Testing Services3,4073,14111,0859,247
Fabrication Services71833732,883
Other 33  30  96  125 
 6,529  7,522  23,627  22,940 
Costs of Sales
Cost of products sold2,5383,57510,3638,925
Cost of testing services rendered2,6212,5978,1407,797
Cost of fabrication services rendered1744037523,063
Other 32  23  97  75 
 5,365  6,598  19,352  19,860 
Gross Margin1,1649244,2753,080
 
Operating Expenses:
General and administrative1,5801,6205,1355,884
Selling148164411431
Research and development7273217221
(Gain) Loss on disposal of property, plant and equipment (2) --  (6) 4 
Total operating expenses 1,798  1,857  5,757  6,540 
Loss from Operations(634)(933)(1,482)(3,460)
 
Other Income (Expenses)
Interest expense(72)(83)(239)(215)
Other income, net 147  158  404  179 
Total other (expenses) income 75  75  165  (36)
Loss from Continuing Operations before Income Taxes(559)(858)(1,317)(3,496)
Income Tax Benefit (Expense) (28) 14  96  114 
Loss from Continuing Operations before Non-controlling Interest, net of tax(587)(844)(1,221)(3,382)
Equity in earnings of unconsolidated joint venture, net of tax------(11)
LOSS FROM DISCONTINUED OPERATIONS, net of tax --  --  --  (2)
NET LOSS$(587)$(844)$(1,221)$(3,395)
Less: Net loss attributable to the non-controlling interest (44) (326) (156) (870)
Net Loss attributable to Trio-Tech International(543)(518)(1,065)(2,525)
 
Net Loss Attributable to Trio-Tech International:
Loss from continuing operations, net of tax(543)(518)(1,065)(2,523)
Loss from discontinued operations, net of tax --  --  --  (2)
Net Loss Attributable to Trio-Tech International$(543)$(518)$(1,065)$(2,525)
 
Comprehensive (Loss) Attributable to Trio-Tech:
Net loss$(587)$(844)$(1,221)$(3,395)
Foreign currency translation, net of tax (52) 193  665  84 
Comprehensive (Loss)(639)(651)(556)(3,311)
Less: Comprehensive (loss) attributable to non-controlling Interest (61) (297) (8) (863)
Comprehensive (Loss) Attributable to Trio-Tech (578) (354) (548) (2,448)
Basic and diluted loss per share from continuing operations$(0.16)$(0.16)$(0.32)$(0.76)
Basic and diluted loss per share from discontinued operations--------
Basic and diluted Loss per Share$(0.16)$(0.16)$(0.32)$(0.76)
 
Weighted Average Shares Outstanding - Basic and Diluted3,3223,3223,3223,322
 
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
 
  
March 31,June 30,
20132012
ASSETS(unaudited)
CURRENT ASSETS:
Cash & cash equivalents$2,347$1,572
Short-term deposits110250
Trade accounts receivable, net6,51211,311
Other receivables322962

Loans receivable from property development projects

1,1261,101
Inventories, net1,6772,324
Prepaid expenses and other current assets468406
Assets held for sale -- 130
Total current assets12,56218,056
 

INVESTMENTS

782765
INVESTMENT PROPERTIES, Net1,9031,815
PROPERTY, PLANT AND EQUIPMENT, Net13,15613,193
OTHER ASSETS499776
RESTRICTED TERM DEPOSITS 3,554 3,445
TOTAL ASSETS$32,456$38,050
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Lines of credit$2,285$3,605
Accounts payable1,9224,834
Accrued expenses2,8513,011
Income taxes payable461469
Current portion of bank loans payable734766
Current portion of capital leases 131 175
Total current liabilities8,38412,860
 
BANK LOANS PAYABLE, net of current portion2,9133,373
CAPITAL LEASES, net of current portion262221
DEFERRED TAX LIABILITIES369497
OTHER NON-CURRENT LIABILITIES 12 543
 
TOTAL LIABILITIES11,94017,494
 
COMMITMENTS AND CONTINGENCIES----
 
EQUITY
 
TRIO-TECH INTERNATIONAL'S SHAREHOLDERS' EQUITY:

Common stock, no par value, 15,000,000 shares authorized; 3,321,555 shares issued and outstanding at March 31, 2013, and June 30, 2012, respectively

10,53110,531
Paid-in capital
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